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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Legal
Satisfied Customers: 118635
Experience:  JA Mentor -Attorney Labor/employment, corporate, sports law, admiralty/maritime and civil rights law
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Im a small contractor in LA with two UCC leans pending against

Customer Question

Im a small contractor in LA with two UCC leans pending against me. I don't have any assets, all I have are just my tools I use on a daily basis to work. I don't have a vehicle registered to my name, all the vehicles we have are in my wife's name but I Drive the truck to work. What will the lender do in this case. I have sent them a letter stating that I could pay a lot less than the monthly payments but they didn't accept it. the loans I took out are the high interest loans that you have to pay back daily payment. what kind of help should I get
Submitted: 2 years ago.
Category: Legal
Expert:  Law Educator, Esq. replied 2 years ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
If you have no assets and only debts, you need to consider filing for bankruptcy, since that would extinguish your debts and stop them from continuing to pursue you. Also, it would stop them from waiting until you do manage to get some assets and then seizing those assets. Other than bankruptcy, right now you have nothing they could collect from, but if you do get some asset, as long as the liens are out there they will be able to take anything in your name.
Customer: replied 2 years ago.
Can they take little funds in my buissnes acount I have to operate my business on a daily basisi whithout my permition? Also can they take funds out of my personal account? I am contenplating a BK , however one of the lenders is stating that it wont work and that they will still come after mesince I personally guaranteed the note.. is that all just a scare tactic?
Customer: replied 2 years ago.
they are also scaring me by saying they will send an investigator down to log in everything I own and any type of tools or belongings I have. Should I be worried about that?
Expert:  Law Educator, Esq. replied 2 years ago.
Thank you for your reply.
Unfortunately, if they have a lien they can seize your business and personal funds and you would need to file both personal as well as business bankruptcy if you signed a personal guarantee.
They may be tracking your credit reports, but that is all they can really track for your assets.
Customer: replied 2 years ago.
wouldn't they have to sue me first in order to perfect their lien in order to take anything personal I have? I just need to buy some times few weeks maybe in order to be able to pay for the bankruptcy attorney that's the reason why I'm asking the question. Or how long would it take before they can actually talk to personal belongings and assets etc. Thanks
Expert:  Law Educator, Esq. replied 2 years ago.
Thank you for your reply.
That all depends on the language in the lien, they may not have to file a suit as the lien gives them rights to seize the property. You need to read the lien documents you signed.
It can take 30 days or less for them to file to seize your property, so you should consider taking your money out now and placing it elsewhere until you resolve it. You need to move to get to the bankruptcy attorney soon if they are threatening to seize property.
Customer: replied 2 years ago.
ok last question, should I take my funds out of my personal account too? I think in regards ***** ***** lien they would have to sue me to get the rights to go after my personal assets. I was just reading it and it also states that they have the right to any future assets or sales, would the bankruptcy possibly get rid of that too
Expert:  Law Educator, Esq. replied 2 years ago.
Thank you for your reply.
Yes, you should take out the funds from the personal account as well. A lien typically does need to be sued upon in order for them to exercise rights of seizure. Bankruptcy would extinguish the debt completely.